Jacob Singer is a student at the University of Michigan majoring in Political Science. He is a Michigan Football and Basketball Writer for Maize and Brew
If you have ever walked into Michigan Stadium in Ann Arbor, you will see 100,000+ seats, two large video boards, pillars that replicate Ancient Roman and Greek architecture, and, for the first time this season, stands to purchase alcohol.
The Big House has changed a lot since Fielding H. Yost started the project to build the Michigan Wolverines a new stadium in the 1920s, but one of the very last things Michigan has not touched is displaying advertisements on the field.
The Wolverines are one of two Division 1 schools in the country that do not advertise within their stadium, with the other being Notre Dame. However, that tradition could come to and end soon due to revenue sharing likely coming to college sports.
The landmark House vs. NCAA settlement surrounding the payment of collegiate athletes received preliminary approval from the U.S. District Court on Oct. 7. This knocked down another barrier for athletes to be compensated for their play while also creating the possibility of revenue-sharing. The final approval is set for April 7, 2025.
Up until now, college athletes could only be compensated via scholarships and Name, Image and Likeness (NIL) funded outside of the university through collectives. However, if the House settlement is passed, Michigan is prepared to share $22-23 million annually to its athletes, with roughly $17 million going to the football program.
In addition to the changes to revenue sharing, all Division I athletes who competed in 2016-21 are eligible for NIL backpay, with the courts deciding participants during this time were prevented from profiting from NIL. This backpay could be as much as $3 billion in damages across all parties included in the suit, and Michigan's involvement in the settlement will be $1.5 million less per year from NCAA revenue distribution over the next 10 years to cover its part of the costs.
In order to afford this $22-23 million annual share to the athletes, the Wolverines may have to focus on the one untouched revenue source - advertising in Michigan Stadium. Michigan Athletic Director Warde Manuel spoke about that on the most recent Conqu'ring Heroes podcast with Jon Jansen.
"We're going to be paying our student-athletes more money," Manuel said. "Our budget is going to grow. It means we're going to have to look at new revenue streams. Also, look at our expenses and make sure we control our expenses. And so it's going to be a combination of both additional revenue that we need to look at -- because this is additional payments that we have to make to our student-athletes -- as well as reduction of expenses where we can."
As it stands today, halftime TV timeouts and quarter changes are filled with congratulating other Michigan teams that have won Big Ten championships, recognizing military veterans and their families, student entertainment competitions, and performances by the Michigan band, among other things. In 2024, there is not a single sign, digital advertisement or paid sponsorship anywhere physically in the stadium or on the video board, outside of a QR code that encourages Michigan fans to point their phones at to learn more about the main NIL collective in town, Champions Circle.
From a revenue-generating perspective, that is millions of dollars left on the table.
"There's no commitment to doing it, but one of the things that stands out is in our stadium, in Michigan Stadium, we have prided ourselves on a history of no signage, no advertising," Manuel said. "As our fans go to other locations, they'll see how people have utilized their stadiums to bring in revenue.
"The good news is we have a source that is untapped at this point in time. Not that we have plans right now to do that, but that's one of the sense of questions that we want to get our fans to say. How would you like to see us develop revenue streams that would support our student-athletes? Is it ticket price increases? Is it through corporate sponsorship? Is it through looking at other premium options that others have, those kind of things?"
With the potential of facing a $50 million shortfall once the House settlement is approved, Manuel is turning to the fans by sending out a survey to see what their thoughts are on how they should raise the necessary money. There are other options like a "talent fee," which Tennessee implemented, or increased beer prices.
The bottom line is that the money needs to come somewhere, especially if the Wolverines want to honor their commitment to maintaining all 29 varsity programs.
"We intend to maximize the revenue-sharing opportunities presented by these new policies to support and recognize the NIL contributions of our student-athletes to the full extent allowed by the NCAA and the agreed-upon settlement," Manuel said. "We are continuing to assess the number of additional scholarships that our department will be able to fund, but we are firm in our commitment not to eliminate any sports or reduce the number of scholarships we currently offer."
Do you think there should be in-stadium advertising in the Big House? Leave a comment down below!